The collection of placement fees remains one of the most heavily regulated aspects of overseas recruitment in the Philippines. Under the Department of Migrant Workers (DMW) rules, a legally operating recruitment agency is permitted to charge a placement fee, but it is strictly capped by public policy.

By law, the placement fee cannot exceed the equivalent of one (1) month’s basic salary of the worker under their approved contract. Furthermore, there are absolute prohibitions that both workers and agencies must recognize. Certain host countries (such as Canada, the United Kingdom, and parts of the Middle East for domestic workers) strictly enforce "No-Placement Fee" policies. Seafarers are also entirely exempt from paying any recruitment or placement fees.

When an agency charges an amount beyond the legal threshold, or collects a fee in a zero-placement fee jurisdiction, it commits an administrative offense constituting illegal exaction, which can lead to the immediate suspension or cancellation of its recruitment license. OFWs who have been forced to pay excessive fees can file an administrative complaint before the DMW or include it as a monetary claim before the NLRC for full recovery plus legal interest.

For manpower agencies, strict compliance with documentation is the only durable shield against allegations of illegal exactions. Every payment collected must be backed by an official receipt that clearly breaks down the nature of the fee. Maintaining an audit-ready, transparent financial trail is an absolute regulatory necessity to safeguard an agency’s corporate standing and DMW license.